Entrepreneurship
response to the changing market needs. It is being
Module
Lesson 1: Introduction to
Entrepreneurship
1.1: What is Entrepreneurship?
The concept of entrepreneurship involves three
major components. These components include:
 Entrepreneurship – is the propensity of mind
to take calculated risks with confidence to achieve
a predetermined business or industrial objective.
To simply put, entrepreneurship is the act of
setting out on your own and starting business.
 Entrepreneur – is the one who undertakes the
endeavor. An entrepreneur is the person
responsible for setting up a business or enterprise.
A good entrepreneur has the initiative, skill for
innovation, and who looks for high achievements.
 Enterprise – is the business organization that is
formed and which provides goods and services,
creates jobs, contributes to the national outcome,
exports, and contributes to the overall economic
development.
1.2: Who can be an Entrepreneur?
There is not one single quality or skill to define an
entrepreneur. Successful entrepreneurs come in various
ages, gender, race, and social status. They also differ in
education and experience. However, research indicates
that most successful entrepreneurs share certain
personal attributes, including: creativity, dedication,
flexibility, determination, leadership, passion, self-
confidence, and “smarts”.
 Creativity – is the spark that drives the
development of new product ideas or ways to do
business. It is the push for innovation and
improvement.
 Dedication – is what motivates the person to
work hard to get the endeavor off the ground.
Planning and ideas must be joined by hard work
to succeed. Dedication makes it happen.
 Determination – is the extremely strong desire
to achieve success. It includes persistence and the
ability to bounce back after rough times. For the
true entrepreneur, money is not the motivation.
 Flexibility – is the ability to move quickly in
true to a dream while also being mindful of market
realities.
1.3: Entrepreneurship and Innovation
The freedom of competition afforded by the capitalist
economy serves to drive the entrepreneur to innovate
and get ahead of his competitors lest he is driven out of
market. Buyers of commodities have tendency to
patronize innovative offerings of any kind and if one
wans patronage, he must remember this motivation.
 Innovation - maybe defined as the introduction
of a new method, procedure, custom, device,
among others.
Innovation could be any of the following:
1. A new product.
2. A new process of production.
3. The substitution of a cheaper material in an
unaltered material.
4. The reorganization of production, internal
function, or distribution arrangement leading to
increased efficiency, better support for a given
product, or lower cost.
5. An improvement in the instrument or method of
doing innovation. Innovation may also be viewed
as the last stage of important process consisting of
the following:
a. Invention – refers to the discovery or
devising of new products or processes.
b. Development – refers to the process by
which the ideas and principles generated from
the stage of invention are embodied in concrete
products and techniques.
c. Innovation – refers to the actual introduction
of a new product or process.
Lesson 2: Developing a
Business Plan
2.1: What is a Business Plan and What
is it for?
Entrepreneurs who plan to enter any business plan
endeavor must have a business plan on hand to guide
them throughout the process. Different business plans
are prepared for different purposes. There are business
plans written prior to setting up and enterprise, which
are similar to a prefeasibility study and feasibility study.
 Business plan - is a written description of your
business’ future, a document that tells what you
plan to do and how you will plan to do it. It serves
as the guide – a roadmap for your business that
outlines the goals and details of how you plan to
achieve those goals.
A business plan serves as many masters:
 It serves the entrepreneur who must set a
navigational course.
 It serves investors and cautious financers.
 It serves the managers and staff of the
organization so that they will know the strategies
and programs of the enterprise.
Business plans can follow the following format for a good
start:
1. Introduction
a. The Business Concept and the Business Model
b. The Business Goal: Vision, Mission, Objectives,
and Performance Targets
c. The Business Offering and Justification
2. Executive Summary
3. The Business Proponents: Organizers with their
Capabilities and Contributions
4. The Target Customer and the Main Value
Proposition to the Customer
5. The Target Market
6. The Product and Service Offerings
7. The Enterprise Strategy and Enterprise Delivery
Systems: Business Competitiveness
8. Financial Data
9. The Capital Structure and Financial Offering:
Returns and Benefits to Investors, Financiers, and
Business Partners
10. Supporting Documents
2.2: Introduction: The Business
Concept
The business concept contains the essence of the
enterprise in a concise but powerful manner. It stresses
the value of product offering the target costumers who
would most likely buy it.
 Business Concept – is the idea that is the basis
for founding or transforming a business. It
includes the basic information of the service or
product, the target demographic, and the unique
selling proposition.
Example of a business concept:
Concept
Open a coffee shop directly across the street from the
Saint Isidore College to capture business from 15900
students.
Customer Needs
The Saint Isidore College is in an isolated location with
the nearest coffee shops 5 kilometers away. Students at
the college have no nearby place to study and socialize
with the exceptions of school’s cafeteria. There is an
opportunity to open coffee shops and pubs in the area
that can become an integral and memorable part of the
student life on the campus.
Issues
The school has at least 203 regular school days. Break
such as Semesterly Break, Holidays, and Summer will
see slow the business.
2.3: Introduction: The Business Model
Another thing to consider while making a business
plan is the business model - it serves as how the
company is organized. It captures the fundamental
assumptions a key learning about a new venture.
 Business Model – is a framework for how a
company creates a value.
Example of a Business Model:
Customer
Activities Relationships Customer
Value
Partners Proposition Segments
Resources Channels
Cost Revenue Streams
The following describes each of blocks of the given
business model:
1. Value Proposition – is an innovation, service,
or feature intended to make a company or product
attractive to customers. It is the reason why
customers turn to one company to over another.
Something to keep in mind is your value
proposition can change, as you gather more data
from customer interviews. That is okay, and is
something to be expected. You will most likely end
 up changing your value propositions several times
before you arrive at your final list.
2. Customer Segments – defines the groups of
people or organizations you aim to reach or serve.
Every company needs profitable customers in
order to survive. Using business model canvas,
you will determine what your customer segments
will be. A good way to think about this block is to
treat it as the demographic information about
your customers.
3. Channels – simply describes how a company
communicates with and reaches its Costumer
Segments to deliver its Value Proposition. It is
important to understand which pathway (or
channel) is the best for your company to reach
your customers.
operating your business model. This final step in
the process is important, because it will help your
team decide whether to pivot or proceed.
2.4: Introduction: Vision, Mission, and
Objectives
 Vision Statement – is a mental picture of what
you what to accomplish or achieve.
 Mission Statement – is a general statement of
how the vision will be achieved. This is an action
statement that usually begins “to”.
 Objectives – provides specific milestones with a
specific timeline for achieving a goal.

4. Customer Relationships – describes the type 2.5: Executive Summary

of relationship a company establishes with its
specific customer segments. Customer
relationships are driven by customer acquisition,
customer retention, and boosting sales – in other
words, you need to get, keep, and grow your
customer relationships.
5. Revenue Streams – is the source of revenue of a
company or organization. A revenue stream is
generally made up of either recurring revenue,
transaction-based revenue, project revenue, or
service revenue.
 Revenue Model – is a conceptual structure
that states and explains the revenue earning
strategy of the business. It answers the
question: “How do I make money?”
This part of the business plan provides a busy reader
with everything that needs to be known about the new
venture’s distinctive nature.
 Executive Summary – is the brief introduction
to a business plan.
2.6: Business Proponents
This third section of your business plan contains
information about business proponents or stakeholders.
There are four types of stakeholders:
1. Resource Mobilizers and Financial Backers
2. Technology Providers and Applicants

6. Key Partners – are the relationships that you
have with other business, governmental, or non-
consumer entities that help your business model
work. These can be the relationships that your
company has with your suppliers, your
manufacturers, business partners, etc. These
partnerships that you will undoubtedly create will
be forces that help your business succeed in areas
that would be inefficient for you to do yourself.
7. Key Resources – describes the most important
assets required to make a business model work.
Additionally, these are the resources that allow an
enterprise to create and offer a Value Proposition,
reach markets, maintain relationships with
Customer Segments, and earn revenues.
3. Governance and Top Management
4. Operating and Supporting Team
2.7: The Target Customers and the
Main Value Proposition
The business proponent must be very precise about
the target audience or target customers. Target
customers must be at least sufficient in size, in paying
capacity, and in interest to purchase the products being
offered by the enterprise.
 Main Value Proposition – is the unique selling
proposition of the enterprise.

8. Key Activities – are the most important

activities in executing a company’s value
proposition.

9. Cost Structure – defines all the costs and

expenses that your company will incur while
2.8: Market Demand and Supply,
Industrial Dynamics, and Macro-
Environmental Factors
The market Demand and Supply simply talk about
the relationship of demand and supply to the enterprise.
The Industry Dynamics discuss the following:
 Who are competing enterprises in the industry
and what are their comparative advantages and
disadvantages? What business models and
strategies are they employing?
 Who are the suppliers in the industry and what
are their capabilities and bargaining power?
 What are the channels of distribution being used
by the industry? How effective are these channels?
The Macro-Environmental Factors, in the other hand,
explains the effect of external factors that might affect
the business. The following are the macro-environmental
factors:
1. Social Environment – this factor includes the
demographic and cultural dimensions that govern
the relevant entrepreneurial behavior.
2. Political Environment – defines the
governance system of the country or the local area
business. It includes the laws, rules, regulations
on allowable and disallowable business practices.
3. Economic Environment – it is mainly driven
by supply and demand forces. It is the same factor
that drives the interest and foreign exchange rates
to fluctuate with the movement of the market
forces.
4. Ecological Environment – includes all-natural
resources and ecosystem that defines the habitat
of man, animals, plants, and minerals.
5. Technological Environment – explains the
makes and breaks competing participants in any
industry.
2.9: Product/Service Offering:
Description, Evolution, and
Justification
1. Product/Services – is the changing highlighting
feature and attributes that would most appeal to
the target customer.
2. Describe and Compare – this section needs to
be explained exactly what are you selling and ho
wit fits in the market place.
3. Price Points – explains products may come into
different sizes, quantities, or varieties that will
impact the price, and services might be more or
less extensive depending on the price to be
changed.
4. Order Fulfillment – describes what happens
once someone purchases what you are selling. If it
is a product, they might buy from a retail store,
have it delivered from your online shop, or
perhaps they submit a customer order in advance
and pick it up a later date.
5. Technology – could be specific technology you
need in order to provide your services or it might
be technology clients need in order to take
advantages of what you’re selling.
2.10: Enterprise Strategy and Enterprise
Delivery System
The business plan should be expounding to the
Enterprise Strategy by mapping the competitive
landscape and by situating the enterprise and its
competitors as to their strategies and chosen
positionings. Additionally, the business plan should then
show foe the Enterprise Delivery System would enable
the business to implement Enterprise Strategy.
2.11: Financial Forecast: Expected
Returns, Risks, and Contingencies
The business plan should then calculate the expected
returns from the business. It includes various
calculations such as:
 Expected return from sales
 Expected return on assets and investor
 Expected return on stockholders’ equity
2.12: Environmental and Regulatory
Compliance
The business plan must articulate the laws, rules, and
regulations governing the business and industry. It
should ascertain that all necessary permits, licenses, and
authority to use proprietary intellectual capital had
either been secured or would definitely be secured.
2.13: Capital Structure and Financial
Offering
The business plan must appeal to its target audience.
Also, it must highlight for them the main features of the
business plan they are looking from.
Lesson 3: Opportunity Seeking
3.1: What is Opportunity Seeking?
Entrepreneurs are innovative opportunity seekers.
They have the endless curiosity to discover new or
different ideas and see whether these ideas work in the
marketplace. This is what separates entrepreneurs to
ordinary businessman whose main objective is to simply
earn profits from producing, buying, and selling goods.
Here is the so-called Entrepreneurial Mind Frame:
Opportunity Seeking
Opportunity Screening
Opportunity Seizing
3.2: Sources of Opportunity: Macro-
Environment
The macro-environment refers to the “big or macro
forces” that affects the area, the industry, and the
market, which the enterprise belongs to. They influence
how business should be conducted, how consumers will
behave, how supply and demand will move, how
different competitors would position themselves, and
how the cost of doing business will proceed.
This particular source includes:
1. Socio-Cultural Environment
The Socio-Cultural forces link to factors that
affect society’s basic values, preferences, and
behavior. The basis for these factors is formed by
the fact that people are part of a society and
cultural groups that shape their beliefs and values.
Many cultural values blunders occur due to the
failure of businesses in understanding foreign
cultures. For instance, symbols may carry negative
meaning in another culture.
2. Political Environment
Every business is limited by the political
environment. This involves laws, government
agencies and pressure groups. These influenced
and restrict organization and individuals in a
society. Therefore, marketing decisions are
strongly influenced and affected by developments
in the political environment.
3. Economic Environment
The economic forces relate to factors that affect
consumer purchasing power and spending pat-
terns. For instance, a company should never start
exporting to a country before having examined
how much people will be able to spend. Important
criteria are: GDP, GDP real growth rate, GNI,
import duty rate, and sales tax or VAT, unemploy-
ment rate, inflation, Disposable personal income,
and Spending patterns.
4. Ecological Environment
The natural forces in the Macro Environment
are important since they are about the natural
resources which are needed as inputs by
marketers or which are affected by their
marketing activities. Also, environment concerns
have grown strongly in recent years, which makes
the ecological force a crucial factor to consider.
For instance, world, air, and water pollution are
headlines every marketer should be aware of.
5. Technological Environment
Technological forced form a crucial influence
in the Macro-Environment. They relate to factors
that create new technologies and thereby create
new product and market opportunities. A
technological force everybody can think of
nowadays is the development of wireless
communication tech-niques, smartphones,
tablets, and so further. This may mean the emerge
of opportunities for a business, but watch out:
every technology replaces an older one. Thus,
marketers need to adapt and keep up to
technology.
3.3: Sources of Opportunity: Industry
After the macro-environment, the next biggest
sources of opportunities would be the industry. One of
the most difficult about industry analysis is defining
what constitutes an industry in the first place. The
proper classification of what industry the enterprise is
competing in is important if the entrepreneur’s
competitors, and what are the critical characteristics of
the market as to the quality of products or services to be
delivered.
Participants in an industry include:
1. Rivals or competitors in a particular type of
business. True rivals or competitors are those
competing for the same or similar markets.
2. Suppliers or input to rivals as well as suppliers of
machinery and equipment, suppliers of manpower
and expertise, and suppliers of merchandise.
3. Consumer market segments being served by rivals
or competitors.
 4. Substitute products or serviced, which customers
shift or turn to.
5. All other support and enabling resources.
After identifying the participants, it would help the
entrepreneur to determine the logic of the industry. How
do these participants in the industry make or lose
money? What critical factors drive the industry’s
success? What critical factors lead to failure?
3.4: Sources of Opportunity: Market
The entrepreneur must also be to measure the actual
demand and supply as well as the potential demand and
supply of the industry that the enterprise belongs to.
Equally important is the monitoring of the prevalence of
product substitutes and their market impact on the
existing players in the industry. Market trend analysis is
also conducted by determining the critical variables,
which would most likely affect the future directions of
the industry.
 Micro-market - refers to the specific target
market segment of a particular enterprise. These
are the target customers that represent the
immediate customers of an enterprise, meaning
those who are currently buying the goods or
services offered by the enterprise customer group
that an enterprise wishes to serve.
 Micromarketing - is a strategy in which
marketing and advertising efforts are focused on a
small group of tightly targeted consumers. For
example, markets can be grouped into narrow
clusters based on commitment to a product class
or readiness to purchase a given brand.
3.5: What is Opportunity Screening?
After opportunity seeking comes to the rigorous
process of opportunity screening. Because of the many
opportunities possible for the entrepreneur, it is
important to come up with a shortlist of a few very
promising opportunities, which could be scrutinized in
detail.
The 12 R’s of Opportunity Screening:
1. Relevance to vision, mission, and objectives of the
entrepreneur. The opportunity must be aligned
with what you have as the entrepreneur’s personal
vision, mission, and objectives for the enterprise
you want to set up.
2. Resonance to values. Other than vision, mission,
and objectives, the opportunity must match the
values and desired virtues that you have or wish to
impart.
3. Reinforcement of entrepreneurial interests. This
answers the question: how does the opportunity
resonate with the entrepreneur’s personal
interests, talents, skills?
4. Revenues. Determine the sales potential of the
products and services that you want to offer. Is
there a big enough market out there to grab and
nurture for growth?
5. Responsiveness to customer needs and wants.
6. Reach. Expand through branches,
distributorships, dealerships, or franchise outlets.
7. Range. The wide range of possible product or
service offerings, thus, tapping many market
segments of the industry.
8. Revolutionary impact. If the opportunity can be
“next big thing” or even a game changer to the
industry, then there’s a big potential to it.
9. Returns. It is a fact that products with low cost of
production and operations but are sold at higher
prices will definitely yield the high return of
investment. Returns can be also intangible;
meaning, they come in the form of high-profile
recognition or image projection.
10. Relative ease of implementation. Will the oppor-
tunity be relatively easy to implement for the
entrepreneur?
11. Resources required. The resources needed to
fulfill and continue.
12. Risks. It always exists. Most successful business
always exists for risks.
3.6: What is Opportunity Seizing?
It is the last step in opportunity spotting and
assessment. It is the “pushing through” with the chosen
opportunity. It is to accept or pursue an opportunity (to
do something) with alacrity or conviction. To take
advantage of an opportunity when offered. When you
seize an opportunity, you take advantage of it and do
something that you want to do. Act quickly to use the
opportunity while available.